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July 26, 2005

Kai-Fu Lee in China

Kai-Fu Lee, the Microsoft executive who left to join Google last week, is apparently forging ahead with his work despite the dueling lawsuits (see previous posts) over his departure. According to reports from Beijing yesterday, he was in China yesterday laying the groundwork for the Google research-and-development center he was hired to lead there.

A Seattleite in Beijing e-mailed me this morning to alert me to Lee's visit and describe some of the additional coverage:

Kai-Fu Lee made a whirlwind visit to Beijing, interviewing candidates for Google's new research center. He talked to reporters briefly ... . He said he approached Google in May on his own after learning [Google CEO] Eric Schmidt -- an old acquaintance -- planned to set up a research operation in China. Since he was not involved in search engine research at MSFT, he didn't think his moving over to Google violated his non-compete clause. Earlier, Lee, who is greatly admired in China, posted a personal message on Blogchina about how he looked forward to starting up the new research institute.

Note the part about not being involved in search engine research. Exactly what Lee was doing in recent years at Microsoft, and to what extent, promises to be one of the critical questions in the lawsuits over his departure, because that will help determine whether what he is doing for Google is in direct conflict. In line with the statement above, he told the New York Times last week that he was primarily working on speech-recognition technology at Microsoft. But Microsoft's complaint says he led the development of some of its search technologies, in addition to being "one of the main architects of Microsoft's business strategies in China."

In fact, Lee's experience in China may be just as or more significant in this situation than his role in the search business. Lee established Microsoft's Beijing research lab, and I've heard him described as extremely effective in working the system and building relationships in China -- as yesterday's visit would suggest.

Posted by Todd Bishop at July 26, 2005 11:15 AM
Comments

Potentially, it's possible that Dr. Kai-Fu Lee, 43 had serious concern about his further career with Microsoft. If he had some performance review issues, for example, his management at Microsoft can fire him without any problems, but by performance reasons. Then in that situation it is very difficult for him to continue work for Microsoft under conditions of potentially being fired at any minute even if he is an outstanding researcher and inventor. The big companies usually have special HR departments and can process it without any legal consequences for them. Then, the move of Dr. Kai-Fu Lee to Google is pretty natural act of self-defence.
http://blog.ivolva.com/?postid=13

Posted by: Oleg Ivanov at July 26, 2005 07:24 PM

Can the non-compete agreement really keep someone from competing with their former employer? I mean, can someone be sent to prison for violating it?

My understanding it that it's more likely to result in a fine. And when you consider the explosive growth of Chinese Internet usage, and quotes like the following from a recent Fortune article:

"Yahoo’s Terry Semel and eBay’s Meg Whitman, both of whom played prominent roles at the forum, both told me that China could represent the largest part of their business in 10 years. (...)"

it seems likely Google could pay a billion-dollar fine and still come out ahead within a few years.

This is a huge loss for Microsoft.

Posted by: Esoos Bobnar at July 27, 2005 02:23 PM

"can someone be sent to prison for violating it?"

I'm trying very hard not to use swear words. I will simply say: no, they cannot. Are you from North Korea?

He signed a contract. It is entirely a civil matter that would be settled by awarding damages.

Historically, large companies in the US have not pursued non-compete clauses with former employees even in very egregious cases. Microsoft has been totally pansy in this department.

Then again they were totally pansy when they gave Apple $100 million and a commitment to Mac office at the exact moment Apple as going to expire from this earth.

But it's the business climate. Who needs real competition when you can just get your senator to drag the other guy into Federal (criminal) court? Not Novell, not Apple and certainly not the endless parade of losers that called themselves Netscape.

Posted by: Grandpa at July 27, 2005 09:54 PM

May I just ask a question, that does anybody know Dr. Kai-Fu Lee's email address. I am so appreciated if anyone would tell me his usual email address. please mail me: zhangyz@cis.pku.edu.cn. Thanks a lot!

Posted by: Yi-Zhen Zhang at August 15, 2005 10:22 AM

Gernerally speaking, there is no way to avoid Dr. Lee joining Google now. Just what kind restrictions will be put on him and his resposibilities in Google. But more important thing one need to notice the intelligent war on the world. Microsoft, the biggest software company in the world is expanding fastly these days, in china especially. it opens a research center today in Shanghai and are going to recruite thousands people there. I personally do not think hr in Microsoft works well. See, the shanghai research center needs people urgently and need good persons acknowledge what's going on outside. It's impossibale to get so many qualified workers in one moment domestically. but see what they are doing. they r making the situation worse by still moving these kind people from China to US, insead sending some back! Acctually, those china locally educated and now temperorily working in US should be sent back immediaty, where really needs them and they can use full potential.

Posted by: hr china at September 7, 2005 03:09 PM

Gernerally speaking, there is no way to avoid Dr. Lee joining Google now. Just what kind restrictions will be put on him and his resposibilities in Google. But more important thing one need to notice the intelligent war on the world. Microsoft, the biggest software company in the world is expanding fastly these days, in china especially. it opens a research center today in Shanghai and are going to recruite thousands people there. I personally do not think hr in Microsoft works well. See, the shanghai research center needs people urgently and need good persons acknowledge what's going on outside. It's impossibale to get so many qualified workers in one moment domestically. but see what they are doing. they r making the situation worse by still moving these kind people from China to US, insead sending some back! Acctually, those china locally educated and now temperorily working in US should be sent back immediaty, where really needs them and they can use full potential.

Posted by: hr china at September 7, 2005 03:13 PM

I have a link to Kai Fu's web site on my web page. I can read some Chinese and it's a very sweat site. I couldn't help but notice the character for Tao in many places. Funny when I tried to use the Simple Chinese translation things weren't translating correctly at all. So I had to do a bit more work to understand what he has out there. He is a very brialliant man with a very similar background to mine. Like minds think alike. Tao~

I don't know about an e-mail. There is an administrator and a Forum on his site. I really admire this man. I was in court during the second day of the case. He has a Win Win situation and so does Google. The Chinese hate Microsoft, especially their attorneys. He has an amazing mind. And he is really setting Microsoft up big time. In China and the rest of Asia, Microsoft has no real market share in search engines. Lee's job was going to be more PR and recruiting with Chinese Students. His contract is amazing. Google agreed that if Microsoft attacked him they would pay for attorney fees. He also gets to keep his salary and compensation package! He is going to get Millions. They agreed to about $10 million, which is what he would have made if he stated at Microsoft.

Google isn't pushing to win this case. You see if they loose, they can file an antitrust case against Microsoft in China, that country that hates Microsoft so much. They will WIN! And the Chinese will Win. With 20.5% of the world's population they could get one huge judgment from Microsoft. Since no one likes Microsoft in the International courts, it is unlikely they will overturn it. When you take a company like Microsoft which is the epitome of everything the Chinese Government with it's 5,000 years of culture and tradion HATES about America and the West, Microsoft could find themselves being bared from even selling anything to China. China is the largest Linux user with over 38% of the market.

If Kai Fu isn't working for Google he can write his book and still mentor students. His power in China after Microsoft is OUT for good would be amazing. The kids idolize him there in much the same way that they idolize Gates in the West.

http://homepage.mac.com/redmondrose/ChinaStrategy.htm

I'm still alive and doing much better using my own research. Stick it Ballmer. YOU HAVE BEEN HAD by my little Gogglies. In court I attempted to approach one of Googles attorneys. A Microsoft attorney said, don't talk to her that's Joan Brewer. I've never seen the man in my life. Microsoft had a legal team of about 9 attorneys to Googles 4. They were passing out binders with all the court documents that were about 5 inch thick to media people.

By the way, until this situation with Gates and I is unresolved, MSFT stock will remain in the toilet. That is exactly where we put it by complying with everyone in Jan 2000! This thing with Kai Fu is going to spin Microsoft into a major hole. ONLY a total change in management will fix this mess! I like BOB HERBOLD who is back working as and Executive VP! At least he has a technical degree. Ballmer is an idiot. He types with two fingers! LOL

Joan L. Grove (Brewer) BS Computer Systems Engineering/3D graphic Artist
Issaquah, WA 98027
425-392-3812

Posted by: Joan L. Brewer at September 8, 2005 10:49 PM

Microsoft innovation was of legal and marketing, scuttling the competition and hindering progress.

US government allowed it, but Europe and China will not.

Secret Microsoft sauce is suspected to be not healthy ?

Posted by: franko at September 12, 2005 09:49 PM
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